• Multi Cap Mutual Funds

In today’s dynamic market, whenever you think of investment, you think of mutual funds. However, which fund should you invest in to ensure maximum benefit. The answer is multicap funds. View More

Multicap mutual funds are diversified funds that invest in stocks across market capitalization. They put their corpus in a portfolio of equity and equity-related stocks of companies holding varying market capitalizations. The proportion of investment is done depending on the investor’s risk tolerance capacity. This way, fund managers can leverage investment opportunities and work on the best permutation combination scheme for optimum wealth creation through investments in the best multicap mutual funds.

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Who Should Invest in Multicap Funds?

Features of Multicap Funds

Factors to consider while investing in Multicap Funds

Taxability of Multicap Funds

The Risk Involved With Multicap Funds

Advantages of Multicap Mutual Funds

Popular Multi Cap Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 38,115
  • 3Y Return
  • 29.16%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 4,686
  • 3Y Return
  • 23.79%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 14,280
  • 3Y Return
  • 23.55%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 11,262
  • 3Y Return
  • 22.34%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 2,758
  • 3Y Return
  • 21.90%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,393
  • 3Y Return
  • 21.86%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 3,865
  • 3Y Return
  • 21.50%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 2,854
  • 3Y Return
  • 20.07%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 6,318
  • 3Y Return
  • 20.04%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 14,541
  • 3Y Return
  • -

FAQs

There is no specific proportion that fund managers need to allocate to multi-cap funds. It enables the fund manager to make decisions without worrying about allocation like other funds. This flexibility allows the fund to diversify in multiple companies, be it small-cap, mid-cap, or large-cap. Fund managers will make decisions based on existing market conditions and promise of return, making this the ideal option for first-time investors.

As multi-cap funds primarily invest in equity-linked instruments, the stocks are exposed to risk and are volatile to market conditions in the short term. So, multi-cap funds are categorized in the high-risk category.

Investing in multi-cap funds is ideal for someone who wants to diversify their portfolio and does not want to focus only on a particular cap, i.e., small-cap, mid-cap, or large-cap. Since multi-cap companies invest in multiple company types irrespective of their market capitalization, they have a relatively lower risk than small-cap or mid-cap, while also being ideal for a long-term investment horizon of at least 5-7 years.

Since multi-cap funds invest in equity and equity-linked instruments, a tax is levied on capital gains or profits from selling the multi-cap fund. The tax is 15% if the investment is sold within 12 months, which is the short-term capital gains tax (STCG). For any capital gains post the 12 months, the long-term capital gains (LTCG) tax is levied at 10%.

Multi-cap funds offer several advantages to investors, such as the ability to diversify their portfolio into multiple sectors without any limitation of the company’s market cap. It also allows the fund manager to consider the best options per market conditions, enabling the investors to get a comparatively minimum risk and exposure to all key sectors and companies.

For most multi-cap funds, there is no lock-in period. Investors can invest and exit at anytime as per their preference.

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